Major Quake Confuses Japan Rare Metal Supply, Usage

Major earthquake impacts on Japanese rare metals supply balance when many of electronic materials plants in Tohoku and Kanto areas stopped the operation. The quake stopped domestic production of indium and metallic arsenic. The suspension of the operation for electronic materials and parts could impact on production of final products.

JX Nippon Mining & Metals has the world largest sputtering target material plant of Isohara in Ibaraki. The firm has world 60% share for semiconductor wiring materials including high purity copper and tantalum and 45% share for indium tin oxide. The plant stopped the operation after the quake due to damage on plant building and facilities along with unavailability of water and power supply. The supply is recovering for power and water and the plant resumes part of the shipment from the inventory and part of the production. However, the production is still limited.

International cobalt market price decreased by around 5% to hit 2-month low after the quake. The market apparently expects lower demand for lithium ion battery. Japanese world market share is around 40% for the battery and the major plant is in eastern Japan.

Mitsubishi Materials stopped operation of cemented carbide tool making Tsukuba plant in Ibaraki after the quake. The damage could decrease demand for tungsten.

Selenium, for which Japanese supply is the largest in the world as byproduct, supply has been very tight since last year due to limited availability of the material of slime. The international price increased by 43% from the beginning of the year. The traders expect the quake damage on Onahama plant in Fukushima would reduce the supply more.

Dowa Holdings stopped operation at indium making Akita Rare Metals after the quake. The plant has no damage from the quake but the plant cannot resume the production due to unstable power supply and limited availability of logistic service.

Fukushima based Furukawa Denshi, which has the world 55% share for high purity metallic arsenic, stopped the operation when the employees cannot come to work due to serious accident at Fukushima Daiichi Nuclear Power Station.